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Mutual fund management fees add to the paid of steep losses endured by most investors
Remember that owners of these mutual funds have paid management fees, above and beyond their initial investment, for steep losses in value. Mutual fund managers have continued to receive high management fees in good times and in bad.

Evaluate mutual fund costs, both visible and hidden, as one important factor before investing hard-earned money


Medical Expense Credit Entitlement
With our medical system teetering on the edge, Canadians can expect the list of expenses covered by medicare to be trimmed. Throw in our insatiable thirst for the fountain of youth and it's a pretty safe bet that we'll all be bucking up more for the medical care we desire.

Income Tax Relief in the form of a medical expense credit
as taxpayer's dip into their bank accounts, they'll be looking for income tax relief in the form of a medical expense credit to help them out along the way. It is imperative that taxpayers understand how the medical expense credit is calculated if they wish to maximize their claim.

know what qualifies as a medical expense credit
In my last article, I stressed the importance of understanding how the medical expense credit works in order to make the most of your medical expenses. Equally important, of course, is to know what is and isn't a qualifying medical expense

Income tax deduction for the costs associated with home office
Many homeowners maintain an office, or at least something resembling an office, in their home. Equally common is the desire of these homeowners to claim an income tax deduction for the costs associated with such office space

Frustration and preparing your income tax go together....
Income Tax Frustration often depends on the complexity of your financial affairs and, in many cases, how intertwined your tax return is with your spouse's return and the returns of other dependants

It's easy to dismiss a Notice of Assessment as just another useless piece of paper
Unless youxre self-employed, April 30 was the deadline for filing your personal income tax return. If you filed your return electronically therexs a good chance youxve already received your Notice of Assessment ? paper filers may have to wait a little longer to receive notice from CCRA

Tax return errors are frequently errors of omission.
Nobody's perfect. Makes a person wish he or she was nobody doesn't it? Some people may think they are infallible but I have yet to meet a person incapable of making a mistake. Despite our best intentions, sometimes our cart falls off the rails and we have to direct our attention to getting it back on track. But when the cart is your tax return what is a poor taxpayer to do?

Notice of Objection - fix errors on your income tax return
If CCRA has refused to process the requested adjustment to your tax return, you believe your Notice of Assessment or Reassessment is incorrect or if you disagree with CCRA's interpretation of the law you can go to the next level and file a Notice of Objection.

If you are planning on severing your residential ties with Canada, read through this new Bulletin and make sure you do it right
If you are planning on severing your residential ties with Canada, read through this new Bulletin and make sure you do it right

Don't have enough money for RRSP contribution this year?
If RRSP funds are a little tight this year, you may want to take a look at investing in a labour-sponsored venture capital corporation (LSVCC). Combining a LSVCC investment with an RRSP contribution can reduce the out-of-pocket cost of your RRSP contribution considerably.

Notice of Assessment not binding if CCRA should subsequently find an error or fraud
This case highlights the fact that CCRA can reassess tax returns outside of the statutory limit. Furthermore, taxpayers in receipt of income, no matter what the source, are expect to report the amounts received on their personal tax returns. The case also reveals that CCRA does act on third-party information such as newspaper articles, television news stories anonymous letters and so on.

Kinder, gentler approach by CCRA to late fees for employers payroll remittances
Its hard to fathom for many, but Canadian Customs and Revenue Agency (CCRA) has been attempting to adopt a kinder, gentler approach in its tax collection task

Points.com great way to finally use all those points from affinity programs and loyalty cards
Is your wallet bursting at the seams? If you answered “yes” there’s a good chance it isn’t wads of cash causing the problem but rather a growing collection of affinity programs, more commonly known as loyalty cards. These cards consumers carry to accumulate “points” that they intend to exchange for some kind of benefit somehow, somewhere, someday in the future.

Real estate, Mortgages and Rental Income - CRA Income Tax Rules
Real estate has been a pretty hot commodity during the past year or two. With interest rates at historical lows, investing in real estate has become an affordable option. Many have chosen to purchase a cottage on the lake, a ski hill condo or a bigger and better house to live in. Others have taken the opportunity to jump into the real estate rental market. If you fall into this latter category, youxll need to be mindful of the income tax rules concerning the reporting of rental income and the expenses that can be used to offset such income

CCRA's reasonable expectation of profit (REOP) replaced by new definition after Supreme Court of Canada ruling
On its most fundamental level, the REOP test enabled taxpayers to deducted expenses and losses from a business or property within the parameters laid out in the Income Tax Act provided the taxpayer’s activity was carried on with a reasonable expectation of profit. Without a reasonable expectation of profit, CCRA was free to deny the deduction of expenses or losses from the activity or property. Not surprisingly, CCRA has relied heavily on REOP to deny taxpayers a deduction for various losses from business and property.

Calculation of rental expenses so that landlords can shelter rental income from income tax
CCRA expects rental income to be calculated using the accrual method whereby rents are included in income when receivable, and expenses are deducted when payable. Where property owners have virtually no receivables or payables at the end of the calendar year, CCRA permits an alternative method, known as the cash method. This method simply records rent received in the year and expenses paid in the year.

Real estate was a hot commodity in 2002 with tax implications for anyone receiving rental income
Its no secret that real estate was a hot commodity in 2002 ask any realtor and they will tell you last year was pretty decent. A lot of last years activity was attributable to former tenants

Retirement savings depend on tough choices: Pay down mortgage or contribute to RRSP?
For the best retirement savings, should I pay down my mortgage or contribute to my RRSP? This is a perennial issue faced by people carrying a mortgage on their home who see the need to set aside funds for retirement.

Deadline fast approaching for RRSP contributions! Time to make a decision
Procrastinators rise up, the time is nigh to do what it is you do best. With the 2002 RRSP deadline falling on a weekend this year, you've received an extra few days to enjoy your indecision but the time to get off the couch and make a decision is upon you.

RRSP season half over … still time to use this Canadian tax shelter
What’s an RRSP? That’s pretty simple - it’s a tax shelter. Indeed, an RRSP is a government-sanctioned tax shelter. True, the government would like Canadian taxpayers to use their RRSPs to help fund their own retirement.

Lowering your taxable income can sometimes mean deferring your RRSP tax deduction to avoid changing tax brackets
A natural inclination of taxpayers when preparing their tax returns is to attempt to lower their taxable income by whatever legitimate means possible. This certainly is a logical approach – after all, a lower taxable income means lower taxes. True enough, but is this a path taxpayers should blindly follow? Not, if you keep the bigger picture in perspective.

Using email to send cash? Not such a crazy idea now that Canadian banks back the novel idea
“Fat chance” was my first reaction when I heard about using e-mail to send cash. In my mind, e-mail is the electronic equivalent of sending a postcard through the mail. My “get real” reaction turned to curiosity upon learning that four of the heavyweights in Canadian banking had signed on - Bank of Montreal, CIBC, Scotiabank and TD Canada Trust. If sending cash by e-mail proves successful other Canadian financial institutions will undoubtedly hop on board.

Spousal RRSP contribution often messed up by investors and vendors
Before tackling the issue of a spousal RRSP contribution, we first need to understand what a spousal RRSP is in the first place. Sure it's simple but I constantly amazed how often investors and RRSP vendors mess this one up.


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